A list of processes:
- Grants – utilized by companies in the concept stages of development.
- Seed Capital – often sourced from the entrepreneur, friends, and family. Seed capital is frequently used to complete prototype work and enable the company to develop to the point of having a test user or small test market.
- Angel Capital – entrepreneurs tend to seek angel investment when an injection of capital is necessary to take the company to the next level in terms of market penetration, customer acquisition and key hires to expand the team. Angel capital raised is usually in the range of $250,000 to $3,000,000.
- Venture Capital – after a company achieves significant growth and market traction, the company may look to venture capital for a strategic partner and investment of $5,000,000 or more.